Innotrac Corporation Announces 2012 Fourth Quarter and Year End Results

ATLANTA, March 28, 2013 /PRNewswire/ -- Innotrac Corporation (NASDAQ-GM: INOC) announced financial results today for the fourth quarter and year ended December 31, 2012. The Company reported a 28.6% increase in service revenues to $30.1 million for the quarter versus $23.4 million reported in the comparable period in 2011. For the year ended December 31, 2012, the Company reported a 25.4% increase in service revenues to $94.0 million from $74.9 million reported in the comparable period in 2011. The increase in service revenue for both the quarter and year ended December 31, 2012 was primarily due to the addition of new client programs and a net increase in volume from existing clients.

Total revenues, which include service and freight revenue, increased 36.4% to $34.9 million from $25.6 million for the three months ended December 31, 2012 and 2011 respectively and increased 27.2% to $107.7 million from $84.7 million for the year ended December 31, 2012 and 2011 respectively. Changes in freight revenue have minimal impact on the Company's operating income since they are billed as pass through expenses with a low markup over cost.

The Company reported net income of $1.5 million, or $0.11 per share, fully diluted, for the three months ended December 31, 2012, versus net income of $294,000, or $0.02 per share in the comparable period of 2011. For the year ended December 31, 2012, the Company reported net income of $3.5 million, or $0.27 per share, fully diluted, versus a net loss of $1.5 million, or ($0.12) per share in the comparable period of 2011.

"We continue to be pleased with the momentum the business is showing. As our 'best-in-breed' model continues to gain market share our sales pipeline remains strong. This past year we enjoyed both solid organic growth from our existing client base along with additional volume from several new premier brands. Our overhead has been structured to handle higher volumes and as we have continued to produce incremental revenue, we have been able to realize increased profits. We expect to add several new brands during 2013 that fit within our current footprint which should allow us to continue to push our business forward," said Scott Dorfman, Innotrac's CEO.

"Our balance sheet remains strong. We ended the year with a $4.0 million cash balance and no advance on our line of credit. We were pleased to be able to operate during our most demanding quarter, using internal cash for the increase in working capital required to support our strong holiday season and continued growth," said Steve Keaveney, CFO.

Innotrac

Innotrac Corporation (NASDAQ: INOC), founded in 1984 and based near Atlanta, Georgia, is a best-of-breed commerce provider integrating digital technology, fulfillment and contact center solutions to support global brands. The Company employs sophisticated order processing and warehouse management technology and operates eight fulfillment centers and one call center spanning all time zones across the continental United States. Innotrac Europe GmbH has a network of fulfillment centers, call centers, and returns processing facilities with operations in the UK, Germany, France, Denmark, Sweden, Poland, Austria, Italy, Switzerland, Ireland, Spain and the Netherlands. Connect with Innotrac at www.innotrac.com or http://www.linkedin.com/company/innotrac.

Information contained in this press release, other than historical information, may be considered forward-looking in nature. Forward-looking statements in this release include statements relating to future events and developments, as well as management's expectations, beliefs, plans, estimates and projections relating to the future. Forward-looking statements are subject to various risks, uncertainties and assumptions. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those anticipated, estimated or expected. Among the key factors that may have a direct bearing on Innotrac's operating results, performance or financial condition are competition, the demand for Innotrac's services, Innotrac's ability to retain its current clients, Innotrac's success in developing new business, Innotrac's ability to maintain or improve gross margins in the face of increasing revenues and pricing pressures, realization of expected revenues from new clients, the general state of the industries that the Company serves, changing technologies, and numerous other factors discussed in Innotrac's 2011 Annual Report on Form 10-K and other filings on file with the Securities and Exchange Commission. Innotrac disclaims any intention or obligation to update or revise any forward-looking statement whether as a result of new information, future events or otherwise.